ELFI offers new private student loan alternative for medical and healthcare students facing federal loan changes

KNOXVILLE, Tenn., May 19, 2026 /PRNewswire/ -- ELFI, a division of SouthEast Bank, today announced the launch of EdMed, a new private student loan program designed specifically for medical and healthcare professionals.

Together with its parent company, ELFI brings over 30 years of experience in the student loan space. ELFI is expanding its graduate student loan offerings with EdMed to specifically support students enrolled in the highest-cost programs in the country, including medical, dental, podiatric, veterinary, optometry, pharmacy and nursing degrees. EdMed's features support borrowers through training and into practice, offering multi-year eligibility; financing for up to 100% of the cost of attendance; flexible income and cosigner requirements; and up to 96 months of residency deferment.

"We are committed to expanding access to education through competitive, thoughtfully designed student loan solutions," said Barbara Thomas, chief operating officer of SouthEast Bank and head of the ELFI division. "Recent changes to the federal student loan system have created meaningful gaps for medical and healthcare students, and EdMed was developed to address those realities with a program tailored to their educational and professional paths."

ELFI also has collaborated with the AAMC to support MD students facing urgent education funding gaps with the MedLoans^TM borrower benefit program, which features an exclusive interest-rate discount on EdMed loans for approved applicants enrolled in or accepted to LCME accredited U.S. MD programs.

In addition to supporting MD students through the AAMC ELFI collaboration, ELFI's EdMed loans can benefit aspiring healthcare professionals in multiple fields, such as dentistry, osteopathic medicine, veterinary, optometry, pharmacy and nursing, as students seek sufficient funding to complete their education.

Among changes introduced by the One Big Beautiful Bill (OBBB) that will take effect July 1, 2026, the elimination of Grad PLUS loans for new students and rollback of professional degree designations are likely to impact students seeking federal aid for medical and healthcare programs, particularly those enrolling after July 1.

Importantly, students who already have borrowed Grad PLUS loans prior to July 1, 2026, are expected to be grandfathered under the provisions for Grad PLUS, allowing them to continue borrowing up to the full cost of attendance for up to three additional years or until completion of their program.

However, new aggregate borrowing limits for Direct Unsubsidized Loans of $50,000 per year and $200,000 in aggregate – levels that are approximately 30-50% below the median four-year cost of medical school at public and private institutions, respectively – may no longer fully cover the cost of medical education, requiring many new graduate students to secure supplemental financing to complete their degrees.

"Medical education has long required substantial financial commitment from students," said Marc Schoonover, general manager of ELFI. "What has changed is the structure that historically helped make that commitment manageable. While many current students will continue to have access to existing federal borrowing pathways, with EdMed, we believe private lenders have an important role to play in ensuring incoming students are not sidelined by financing constraints."

To better understand the implications of rising education costs and evolving loan availability, ELFI commissioned a study examining the cost of medical school and healthcare training, the challenges students face in financing their education and the broader impact on the physician pipeline. Based on study findings, the median four-year cost of medical school has increased 16% over the past five years. Approximately 70% of the medical school class of 2025 graduated with education debt, with average balances exceeding $220,000 upon entry into residency – nearly 8% higher than in 2020.

As education costs rise and federal loan capacity contracts, private financing has become an increasingly essential component of how healthcare students plan their futures. These dynamics are expected to primarily affect new cohorts of students entering programs after federal policy changes take effect on July 1, 2026, rather than those already enrolled and utilizing existing federal loan options. Programs such as EdMed are designed to reflect the realities of medical education, accommodating student loan debt carried over from undergraduate degrees, further financing for extensive training timelines and repayment flexibility aligned with professional earnings during residency.

"Medical, dental and other healthcare students have already demonstrated extraordinary dedication and discipline," Thomas said. "Our goal is to simplify the financing experience so they can remain focused on their education and training. Expanding access to medical education ultimately benefits not only individual borrowers, but also the communities and patients they will serve."

EdMed graduate loans are available to students enrolled in MD, DO, DPM, DDS, DMD, DNP, MSN, OD, DVM and PharmD degree programs. Eligibility is subject to credit approval, school certification, enrollment verification, legal residency and other requirements.

For more information and to check rates and eligibility, visit https://www.elfi.com/student-loans/graduate-school-loans/medical-student-loans/.

Media contact:
Lauren Miller
MoxCar Marketing + Communications
865-599-4050
[email protected]

SOURCE ELFI